Bitcoin (#BTC ) has recorded its first three-week winning streak since February of this year.
According to Amberdata, there has been a massive purchase of call options with a strike price of $75,000 and above, accompanied by the selling of put options.
Bitcoin Records a Three-Week Rally
According to data from TradingView, #Bitcoin (BTC) is experiencing its first three-week rally since February. This rise has been driven by traders purchasing call options, which offer the potential for significant gains above $75,000.
The largest cryptocurrency by market capitalization increased by over 3% during the seven days leading up to September 29, following more than 7% gains in each of the previous two weeks. The announcement of significant stimulus and China’s inflow into spot ETFs traded in the U.S., exceeding the monthly supply of newly mined BTC, likely helped maintain the upward momentum.
Massive Purchases of $75,000 Call Options
As prices rose, large purchases of call options with a strike price of $75,000 and above were reported on the cryptocurrency exchange Deribit, according to Amberdata. Investors have also begun selling put options.
"This flow indicates a bullish outlook for spot prices and simultaneously anticipates an acceleration in price movements," said Greg Magadini, director of derivatives at Amberdata.
A call option gives its holder the right, but not the obligation, to purchase BTC at a predetermined price. A call option buyer is implicitly bullish, while a put option buyer is bearish and hedging against price declines.
Expectations of Further Price Increases
The increased purchase of call options and selling of put options suggest an expectation that prices will soon break out of a six-month corrective trend, which analyst Peter Brandt has called an "expanding triangle."
If this breakout occurs, it could signal the resumption of a broader upward trend that started in October 2023 when Bitcoin’s price was below $30,000.
Targeting $100,000
“A break above $75,000 could quickly lead to a surge past historical highs toward $100,000, where the latest tranche of call option buying activity is focused on the December 27, 2024 expiry,” Magadini said.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
